Senate approves 2023 Tax Plan

The Senate approved the 2023 Tax Plan yesterday. This means, for example, that, effective January 1, 2023, the transfer tax for buyers who will not live in the property themselves will increase from 8 to 10.4 percent. The House of Representatives had already approved this earlier.

The so-called "jubelton" (gift tax), which allows parents to gift their children more than €100,000 tax-free for home purchases, will be limited to €28,947. This gift tax exemption will be abolished completely starting January 1, 2024. On the other hand, first-time homebuyers under 35 will be exempt from transfer tax starting January 1, provided their home is valued below €440,000. The current property value limit is €400,000.

Periodic donations
According to the 2023 Tax Plan, the deduction for periodic gifts will be capped at €250,000 per calendar year, effective January 1st. Currently, there is no deduction threshold for this. However, the government does not consider it desirable for very high periodic gifts to reduce taxable income to zero.